ESG Standards: Why does it matter?

ESG analysis has become an increasingly important part of the investment process. Investors are incorporating ESG data into the investment process to gain a fuller understanding of the companies in which they invest.

Numerous institutions are working on the standards and define materiality to facilitate incorporation of these factors into the investment process.

At the end of last year, the CFA Institute released Global ESG Disclosure Standards for Investment Products.. These Standards are designed to communicate information about an investment product’s consideration of environmental, social, and governance (ESG) issues in its objectives, investment process, or stewardship activities.

The NSSMC (National Securities and Stock Market Commission) of Ukraine also in December of 2021, summarized the practice of applying corporate governance legislation and took another step towards the extension of the sustainable finance instruments.

The National Bank of Ukraine presented Sustainable Finance Development Policy 2025. According to the Policy, the NBU will develop recommendations for the disclosure of ESG information and metrics by the end of 2023 for banks, and by late 2024 for NBFIs.

Видео ESG Standards: Why does it matter? канала CFA Society Ukraine